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- When the price is 10 TL for each pack of cookies, the supply is 250 thousand and the demand is 120 thousand boxes. When the price is 9,5 TL for each pack of cookies, the supply is 200 thousand and the demand is 240 thousand boxes. Since the price-demand and supply-demand equations are linear; Calculate the producer and consumer annuity and find and interpret the market equilibrium point after-tax if the consumer is taxed at a rate of 0,75 TL per product.3. Suppose demand and supply for your company's product is given by 1 1 Qd = 14 P and Q 2 - Pr – 1 4 %3D %3D a. Determine the equilibrium price and quantity for your company's product. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the product. Determine the impact of this excise tax on the equilibrium price and quantity for the product. c. How much tax revenue does the government earn with the $12 tax?1. Itis known that the demand function for a product in the market shows that Qd = 7+ Pand the supply function (Qs) = 16-P. The product is subject to Rp. 3, - / unit. Specify: a. The equilibrium price and the amount of the equilibrium price in the market before and after the tax b. The amount of tax revenue by the government 2. Note that the consumption function is 40 million + 0.5Y. If the national income is Rp. 200 million, the amount of public savings is|
- Suppose that a per-unit tax of 25 centavos per pack is placed on the sale of cigarettes by the government, shifting the market supply of cigarettes from S to S' as shown. Answer the following questions regarding this case. 1. Determine burden of the tax under different demand conditions (i.e., when demand is D, and when demand is D2). Who gets most of the burden of the tax under different demand conditions? 2. Prove that the increase (or change) in the price is dependent on the elasticity of demand and supply, under different demand conditions (i.e., when demand is D, and when demand is D2). 3. What tax revenue is expected by the government if the demand for cigarettes is D,? Is D,? Note: Show supporting calculations. Price ($ per pack) S' 1.50 1.40 1.30 1.25 1.15 D: D2 Quantity (Millions of pack)The demand and supply functions for a type of good are shown by the equation: Qd = 1500-10P and Qs = 20P-1200.Each item sold is subject to a tax of IDR 15.00 per unit.Define: a. Price and balance before tax.b. Price and balance after tax.c. Draw the two balances on a cross axis.d. Producer 's tax burden .e. Government revenue from taxes on the sale of the goods.Question 5: Combined state and federal taxes on gasoline average around 50 cents per gallon, and these taxes are statutorily levied on gasoline sellers. Because the demand for gasoline is relatively inelastic compared to the supply of gasoline: buyers likely do not bear much of the actual burden because it is statutorily levied on sellers who must submit the tax payments. sellers likely bear most of the actual burden of the tax through lower gasoline prices. O the net price received by sellers after they pay taxes likely falls by almost the full amount of the tax. O buyers likely bear most of the actual burden of the tax through higher gasoline prices.
- A sales tax levied at the rate $T does not have the same effects on the market's equilibrium as does an excise tax levied at the rate $T . Select one: a. True b. Falseducer surplu... Practice midterm questions Review 10 9 8 7 PLEASE IGNORE Consider the supply and demand diagram corresponding with this question. Suppose that a per unit tax of $4 is placed on the good in question. At the new equilibrium, how much total tax revenue does the government collect? Price 6 5 SD3 Review 4 3 2 1 0 QEcon Mid-Sem... 1 12.0 2 3 4 Type your numeric answer and submit 5 diagram depicti... 6 7 8 9 D S 10 11 G supply a Confusing Quantity 12Critically evaluate the impending rise of sales tax planned by the Japanese government and its effect on the demand and eventually public spending
- Please help me to ensuere that my answers are correct. Complete all of the blanks. What is the pre-tax equilibrium price Using the demand schedule, what is the elasticity of demand (using the traditional method) if the price had changed the equilibrium price to $60 ? Is it (elastic, inelastic, unit elastic, perfectly elastic, perfectly inelastic): Suppose a $10 tax will be imposed on the production of item A, who will carry more of the burden? (consumer, supplier, neither, equal) The consumer surplus after taxes is The total surplus after taxes is 3 : The total tax revenue is The tax has now been removed because people thought it was unfair. Will total surplus increase, decrease, or stay the same? ]By what amount if any? [ The government decides to impose a price floor at $20. After their action, what is the market price? If there is a shortage or surplus, how much is it? (0 if there isn't one) They then repeal the price floor and create a price ceiling at $40. What is the market price…Give typing answer with explanation and conclusion The burden of a sales tax will fall primarily on businesses because sales tax is collected from businesses. true or false?6. Which of the following best describes the effects of a per unit purchased tax on producers when the demand curve and the supply curve are both neither perfectly elastic nor perfectly inelastic? a) Price to consumers increases; price received by producers increases; quantity bought and sold increases b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases 7. Which of the following best describes the effects of a per unit purchased subsidy to producers when the demand curve and the supply curve are both neither perfectly elastic nor perfectly inelastic? a) Price to consumers increases; price received by producers increases; quantity bought and sold increases b) Price to consumers increases; price received by producers…